U Unity Potential Buyout Soon?!If you missed my previous signal on U (Unity):
Now Unity Technologies (NYSE: U) just caught fire — surging 12.5% in a single day — on a massive uptick in volume that should have every sharp trader watching closely. With $39.1M in volume against a daily average of 9.4M shares, something is clearly brewing beneath the surface.
But this isn’t just about technicals — the options market is lighting up with unusual activity, and there’s fundamental buyout potential that’s getting harder to ignore.
🔍 Options Traders Are Making Bold Bets
Yesterday: Traders loaded up on January 16 $37 strike calls — deep out-of-the-money, high-risk, high-reward plays.
Today: A massive $3.5 million bet was placed on the $30 strike calls, also expiring January 16.
These aren’t casual bets. This is smart money positioning for a potential takeover or major catalyst, and the timeline is clear: January 2025.
📈 Why a Buyout Could Be Back on the Table
Let’s rewind. On August 9, 2022, AppLovin (APP) made an unsolicited offer to acquire Unity in an all-stock deal worth $17.5B, valuing Unity shares at $58.85 — an 18% premium at the time. Unity rejected the deal.
Fast forward to today:
AppLovin's market cap has exploded — now sitting at a jaw-dropping $127B, up 3,800% since late 2022.
Unity, meanwhile, is a shadow of its former self, trading far below its ATH of $201.12 (November 2021), with ongoing struggles in monetization and competition.
But this disparity creates a prime M&A setup:
AppLovin now has the firepower and strategic incentive to revisit the acquisition — with Unity’s depressed valuation, it’s arguably a bargain.
The AI + gaming narrative is red hot. Combining Unity’s engine with AppLovin’s ad and monetization capabilities could be the synergy Wall Street loves.
🎯 The Trade Setup
Unity just broke out with conviction on high volume — this could be the first leg of a larger move.
Options flow suggests bullish sentiment into early 2025.
A renewed takeover offer could easily push the stock back toward the $50–60 zone, if not higher.
🧠 Final Thoughts
Unity is no stranger to volatility, but when volume spikes, options explode, and a cash-rich suitor like AppLovin is thriving, traders should sit up and pay attention.
We may be watching the early stages of a buyout story 2.0 unfold — and Wall Street might be starting to price it in.
📌 Watch Unity (U) closely in the coming weeks. The market may be whispering — or shouting — "Takeover incoming."
